THIRD PARTY RISKS.

Waikato Times, Volume 108, Issue 18075, 19 July 1930, Page 7

THIRD PARTY RISKS.

PREMIUMS UNDER TRIAL. (Times correspondent.i WELLINGTON, Friday. Brief reference to the first year’s operations under the Motor Vehicles .Insurance (third party risks; Ait is made by the General Manager of the Accident Insurance branch if the State Fire Insurance Office, Mr J. H. Jerram, in his annual report to Parliament, presented in the Housi of Representatives to-day. Mr Jerram states that the administrative details of the scheme w- re werked out by representatives of the insurance companies, the Post Office, and the Stale Accident Office, and that the insurance of over 200,000 vehicles has been satisfactorily effected. Simplicity of procedure and the entire elimination of competitive costs were aimed at, with a view to giving Ihe public the benefit of cover at the lowest possible administrative cost. The premiums fixed by the Government were in all cases lower than were charged for more restricted cover at the time of the passing of. the Act. “Experience of the cost over a period of at least two years,” says Mr .Terrain, “will enable equitable adjus'ments to be made; in the meantime premiums are experimental. Motorists thus have a direct financial imere- 1 in eliminating the negligent and careless driver, and, when an accident does unfortunately occur, in preventing exploitation. Exploitation is probably the greatest danger to which any system of compulsory third party insurance is exposed.”